Omidyar Network ramps up in downturn

Global economic crisis isn’t scaring away eBay founder Pierre Omidyar from making bigger bets on social change. His philanthropic investment firm, Omidyar Network, which funds both for-profit companies and non-profits that he believes can help the world, is ramping up amid the financial turmoil.

As part of the expansion, Omidyar Network said today that it has added six new hires who hail from companies including eBay, JPMorgan Chase and BBC World Trust.

Two will join the firm’s leadership team. The rest will join its ranks of investment professionals who dole out money.

Omidyar, whose net worth is around $8 billion, founded Omidyar Network in 2004, alongside his wife Pam. In addition to the usual foundation, it houses an investment arm that gives money to for-profit start-ups that they believe can improve lives.

Funding – philanthropic and otherwise – is expected to take a hit during the economic turbulence as many of the usual sources take a more cautious approach. Omidyar’s plan to increase investment would fill in some, but hardly all of the shortfall.

It hopes to commit $110 million to non-profit and for-profit companies this year, according Wendy Conway, a spokeswoman for Omidyar Network, in Redwood City. Significantly more is to be invested next year, she said, without offering a specific amount.

Omidyar Network already supports microfinance for the poor as part of its mission to improve access to capital. Under that rubric, Omidyar said it will now also fund entrepreneurs who bring low-cost products to market.

Additionally, Omidyar said it will add to its investments aimed at improving transparency in media, markets and government. That mission will expand to include the digital world.